• This volume represents a 32% increase in its credit activity in the past year.
  • The ICO obtained a profit of 60 million euros, 50% more than in 2011, increasing its solvency ratio to 14.5%.

The Official Credit Institute (ICO) granted loans amounting to 27,532 million euros during 2012, of which two thirds have been to SMEs, representing an increase of 32% over the previous year. In this regard, it is important to highlight the financing through the Mediation Lines (11,511 million euros), and the contribution to the Fund for Payment to Suppliers (6,387 million euros).

In addition to its own credit activity, the ICO managed funds and instruments of official financing for export and development (FIEM, FONPRODE and CARI); He has been a payment agent for the Provider Payment Fund (FFPP); and also, he was entrusted with the financial management of the Autonomous Liquidity Fund (FLA). Therefore, the activity managed by the ICO as a whole reached the figure of 131,600 million euros, compared to 82,117 million in 2011, representing an increase of 60% in 2012.

As regards the raising of funds in the capital market, during 2012 the ICO has made issues for more than 19,000 million euros. In a complicated and volatile environment, ICO has continued with its strategy of diversification of its financing sources, both in terms and in its investment base.

Analyzing the income statement, it should be noted that in 2012 the Institute made a net provision of provisions of 679 million euros, 81% higher than those made in 2011. Despite the aforementioned increase, the profit after taxes was 60 million euros, which represents a 50% increase over 2011. The financial interest margin, meanwhile, stood at 760 million euros, with an increase of 75% over the previous year.

In addition, the Institute improved its solvency indicator, in line with the requirements established by Basel III. This index stood at 14.5% in 2012.

The ICO during 2012 continued to gain weight in all Spanish credit institutions: the assets of the ICO represented 3.4% of the system and credit to companies over 1 year 10.4% (data as of October 2012).

Finally, it is important to highlight that the efficiency ratio has improved, standing at 4.7% in 2012 in 2012, clearly above the average for the financial sector. Given the austerity and cost containment policy, operating expenses, excluding depreciation, have decreased by 13% compared to December 2011. The reduction is 22% in general expenses and 6% in personnel costs .

Mediation Lines for SMEs

As mentioned, the ICO, through the Mediation Lines, granted 11,511 million euros to a total of 162,075 companies, for an average amount of 70,000 euros.

Loans destined to finance working capital needs through the ICO-Liquidity line represented 6,775 million euros, in 89,741 loans. Likewise, through the ICO-Investment line, 4,174.9 million euros were granted in 65,728 loan operations to companies for the execution of new projects.

With respect to the rest of the Mediation Lines, it should be noted that the ICO-Entrepreneurs line has financed 4,261 new business projects amounting to 141 million euros. On the other hand, 231 million euros of the ICO-Internationalization Line have been allocated to finance 462 projects for the external expansion of Spanish companies. Finally, 188 million euros have been provided through the rest of the ICO-Guarantee SGR, ICO-Exportadores and others lines.

Supplier Financing Fund:

One of the main economic policy measures of the Government in 2012 has been the start-up of the Financing Fund for Payment to Suppliers, in which the ICO contributed a contribution of 6,387 million euros. In addition, the ICO was designated as a payment agent and has been responsible for managing and executing the payment process for all invoices to companies and freelancers.

In two months, 5.5 million invoices were paid to 135,450 suppliers amounting to 27,000 million euros. This measure has meant a large injection of liquidity in the Spanish economy, equivalent to 2.5% of GDP.

This mechanism has especially benefited SMEs. In the case of the Town Halls, of every 100 suppliers to whom their bills have been paid, 65 were SMEs, 34 natural persons and 1 large company. As regards the payments of the Autonomous Communities, two out of every three outstanding invoices have been paid to SMEs.

With this, ICO has carried out essential work in 2012 in the effort to guarantee financing to SMEs.

Breakdown of ICO credit activity in 2012

DECEMBER 2012
MEDIATION AND SMEsAMOUNT
(millions of euros)
No. OF OPERATIONS
ICO – LIQUIDITY6,775.389,741
ICO – INVESTMENT4,174.965,728
ICO – INTERNATIONALIZATION231.3462
ICO – ENTREPRENEURS141.24,261
REST OF LINES188.21,883
TOTAL MEDIATION AND SMEs11,510.9162,075
DIRECT FINANCING1,476
ICO LINE – AUTONOMOUS COMMUNITIES5,333
SUPPLIER PAYMENT FINANCING MECHANISM6,387
OTHERS2,825
TOTAL27,531.9

Outlook for 2013

Continuing with the effort to support SMEs, in 2013 the ICO has made available to self-employed and businesses 22,000 million euros in financing lines. The Institute has simplified the operation of the Lines, focusing on two main areas of activity: Companies and Entrepreneurs, and Internationalization.

(Data pending audit)



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